Translation: Transit Oriented Development. Developer George Sherman is poised to fill this vacant lot at 38th and Hiawatha in south Minneapolis with Longfellow Station, a mixed use commercial/residential development.

In fact, things seem to be moving right along. Last week Minneapolis found $1.9 million in federal dollars sitting around in the city’s till and used it to help Sherman buy the property from the previous developer…whose plan failed.

Anyway, Sherman wants to build 180 apartments, most of them “affordable” which often means subsidized housing. Construction on 10,000 feet of “neighborhood commercial space” is set for late this year.

TOD, as much as moving people, is what light rail proponents promised would be the eventual payoff when Hiawatha line trains began running in 2004.

Boosters of transit argue developers perk up and pay attention when relatively permanent train tracks are laid – a sign the transit service will be there more than a year or two.

Add some stations along the line and developers begin dreaming about the money they might make from building apartments and houses near the station that will be rented and purchased by transit lovers who want an option to owning a gas guzzler.

Oh yes, and cities and counties tend to like TOD because as long as populations increase and the apartments and houses are occupied the development promises more property tax revenue.

Which is why the local governments in many cases are willing to kick start development with subsidies.

Does TOD work? Maybe.

The Metropolitan Council says, “since 2000, nearly 7,700 new housing units have been built along the (Hiawatha) line, with another 6,750 units planned (as of April 2009).”

Will Central Corridor light rail create similar TOD tremors? Stay tuned. The line won’t be complete until 2014, but there’s certainly no shortage of vacant thus developable space along the line.

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Yeah, TOD works. It has to be market driven and cities shouldn’t subsidize losing locations just because they are near to rail lines. The city does have a role to play, however. The city can zone the area properly, even requiring a certain level of density along the route. Minneapolis and St. Paul both are following this plan along the Central Corridor, but I’d personally like even more density there. Changes to the zoning laws are available on the Met Council’s website.

The logic behind TOD is pretty simple. Rail, unlike bus, fixes a permanent route. Developers know their units will always be within a certain distance from rail stops and can therefore calculate proximity to public transit as a selling point for consumers. As rail connections get better and you can rely on it to get you where you need to go more often, the value of living near a light rail stop increases. Right now, living along the Hiawatha is somewhat valuable if you work downtown. The Central Corridor location is probably a little better because you could live along the route and be within 25 minutes of both downtowns and be able to access the airport and MOA without a car.

Of course, the goal isn’t to go everywhere and replace cars. It just means that you can save the gas for summer trips or trips to the furniture store and not blow all your gas money getting to and from work.

thebombic

I live in that area and can definitely vouch for the need for development at that site. The area still has an industrial feel, which wastes the benefit of having a LRT stop just across the street. I do hope, however, that a development on this plot will lead to improved road conditions on 38th Street. The road has deteriorated to such a degree that it is better to avoid, which would hamper any potential retail development.

TOD seems to be popping up around the LRT … there is another development in the works (Oak Station Place) a few blocks southward along Hiawatha & 46th. Development will occur (in the long run). It should be noted that it will not happen overnight. These things take time.